Under HI state law what chapter is the SAFE Act under & what Act is its amendment under?

Chapter 454F

Act 84 (admendments to Ch 454F)

What does does the SAFE Mtg Lic Act require states to do?

To have a clear system of regulation that complies w/the federal law in place to regulate the residential mtg industry or face federal takeover

What does SAFE stand for

Secure And Fair Enforcement

What is another name of Act 84?

S.B. No 2603

What does NMLS stand for?

Nationwide Mortgage Licensing System

Who needs to be registered w/the NMLS?

All mtg loan originators & companies

According to Chapter 91 of 454F-B what shall the DFI commissioner establish?

A procedure for the secondary review of each applicant that failed to meet the criteria for licensure.

What is the Mtg Loan Recovery Fund for?

Any person aggrieved by an act, representation, transaction, or conduct of a licensee involving fraud, misrepresentation, or deceit may recover $ by order of the circuit or district court.

What is the maximum a person can receive from the Mtg Loan Recovery Fund?

Not more then $25k per transaction, including court costs & other fees

Who pays & what amount are paid into the Mtg Loan Recovery Fund?

Principle Office $300

Branch Office $250

Mtg Loan Originator $200

Upon application for renewal of a license who pays & what amounts do they pay?

Principle Office $200

Branch Office $100

Mtg Loan Originator $100

Is your fee refundable upon a denial of a license renewal?

Yes

According to Ch 91 the commissioner may adjust or cease renewal fees if the Mtg Loan Recovery Fund attains what funding level?

$750k

Can the commissioner adjust fees to a reasonable level to obtain a funding level of $750k?

Yes

What can the commissioner or designee expend Mtg Loan Recovery Fund monies on?

Legal Counsel

Public Accountant to manage the fund

Employ personnel to manage the fund

Retain a consultant to recover & collect any payments not paid

Can the the commissioner adjust fees if the Mtg Loan Recovery Fund falls below $260k after the 1st 4 yrs of it being established?

No: It must fall below $250k only after the 1st 5 yrs of it being established.

What does DFI stand for?

Division of Financial Institutions

Who supervises & regulates all state-chartered & state-licensed financial institutions in the state of Hawaii, all escrow depositories, & all $ transmitters?

Division of Financial Institutions (DFI)

What is the 2 branches of DFI?

Examination Branch

Licensing & Regulatory Analysis Branch

What is the (DFI) Examination Branch responsible for?

On-site examinations of Financial Institutions

Escrow Depositories

What is (DFI) Licensing & Regulatory Analysis Branch responsible for?

Licensing activities

Regulatory approvals

Off-site monitoring program

The purpose of Senate Bill Act 084 is to

a) be in compliance with act 454
b) allow the state to continue to work toward meeting its obligations under the Federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008
c) allow the state to continue to work toward meeting its obligations under the Federal Secure and Fair Enforcement for Mortgage Licensing Act of 2010
d) pass general mortgage doctirine # 454

B

Act 32

a) was a necessary step in meeting the mandates of the SAFE act
b) was passed in early 2009
c) established a compliance resolution fund
d) all of the above

D

True or False: Act 84 amended Chapter 412 by adding a new sections stating NonDepository financial loan
services companies must register with the NMLS system only if any employee acts as a mortgage loan originator.

True

What would be considered grounds for having you Mortgage Loan Originator license revoked?

a) Denying a loan based on insufficient income b) Denying a loan based on a borrowers race
c) Denying a loan based on a lack of equity based on the appraisal
d) Denying a loan based an applicant not being of legal age to sign a contract

B

What would be grounds for revoking a Mortgage Loan Originator license?

The entitiy responsible for the supervision and oversight of Mortgage Loan Originators/ Companies is?

a) Professional and vocational Licensing Division
b) The governor
c) The Division of Financial Institutions
d) The Commissioner

C

Which of the following is not correct?

a) The surrender of a Mortgage Originator license, does not protect the licensee from liability for acts committed prior to the surrender
b) The expiration of a Mortgage Originators license will not protect the licensee from any preexisting contract between the licensee and the borrower
c) The surrender of a Mortgage Originators license will not protect the licensee from a proceeding to revoke a license.
d) The surrender of a Mortgage Originators license releases you from liability

How much notice is required to be given to the Commissioner before a branch office can be closed?

a) No notice is required
b) 30 days
c) Current loan applicants only need to be notified
d) 60 days

B

A licensed loan originator must retake the exam if they fail to maintain a valid license for how many years?

a) 1 year
b) 2 years
c) 3 years
d) 5 years

D

The Mortgage Originator Application process includes all of the following except:

a) Fingerpirnts
b) Tax Returns
c) Credit Report
d) Background Check

B

What is the amount of the Mortgage Loan Recovery Fund renewal fee?

a) $50
b) $75
c) $100
d) $250

C

What would be an allowable reason to delay a closing?

a) The mortgage Loan Originator quit the Mortgage broker
b) The hospitalizaation of a family member of the Mortgage Loan Originator
c) The borrowers are out-of-town
d) The Mortgage Loan Originator double-booked the closing

a) 6-Plex
b) Mobile Home on a fixed foundation
c) New Home Construction
d) 1-4 Units

D

If you fail the exam a second time, how long must you wait before you can re-take the exam?

a) 1 day
b) 7 days
c) 15 days
d) 30 days

D

Which of the following is NOT true?

a) NMLS is responsible to keep licensee info updated
b) A mortgage loan originator can only work for one company at any time
c) An application is "filed" only after all information and fees required have been received by the Commissioner
d) All licensees shall pay a Mortgage Loan Recovery Fund fee

A

What would not be grounds to cause a loan originator to have their license revoked?

a) Charging for the actual cost of a Title Commitment
b) Charging a $10 administration fee to the cost of an appraisal
c) Charging a $20 for a $15 credit report
d) Charging a flat add-on fee above the cost of an inspection

A

If a borrower writes a check to pay for a credit reprot to whom is the check made out to?

a) The Mortgage Loan Originator
b) The Mortgage Broker
c) The Mortgage Lender
d) The check can be left blank and filled in later

B

Which is not one of the duties of the Commissioner:

a) The Commissioner may, reinstate a license, terminate, suspension, or grant a new license
b) Criminally Prosecute a Licensee
c) The Commissioner can charge an hourly fee of $40, charged to the licensee during an investigation or examination
d) The Commissioner can suspend a license application for being incomplete

B

All of the following are correct except:

a) The Commissioner may conduct examinations of any licenses
b) The Commissioner may at any time investigate the books and records of any licensesee
c) The Commissioner shall have free and reasonable access to the offices, books and records of the licensee
d) The Commissioner may investigate a Licensees personal checking account

D

The Unique Identifier must be displayed on all of the following except?

What could a Mortgage Loan Originator say to an appraiser and risk having their license revoked?

a) "I believe you made an error on the appraisal"
b) "Do not forget the horse stables in the backyard"
c) "there was a home that sold around the corner as a For-Sale-By-Owner"
d) "Do not forget there is a minimum value needed for the appraisal"

D

A borrower has rescinded the mortgage loan within the allowable days, what should the loan originator do?

a) Tell the borrower they will be sued for Breach-of-Contract
b) Tell the borrower they will be reported to the credit bureaus which will damage their credit
c) Refund only the application fee
d) Refund all of the borrower's money that was paid to the loan originator

Which of the following is correct regarding Continuing Education?
a) CE Course Credit is good for 2 yrs
b) You can retake the same class course each year for Continuing Education Credit
c) A licensed mortgage loan originator, who is an instructor, needs to take all 8 hrs of CE just like everyone else
d) If you re-apply for a Mortgage License, you may have to take additional CE hours

D

Which of the following needs a Mortgage Loan Originator License?

a) Attorney
b) Person originating 1st
c) Person selling his own home and providing his own financing
d) Processor